Developers, officials say more downtown apartments are coming

Three major apartment projects were completed and opened in downtown Wichita last year.

This year should see work start on four more – in existing buildings and new construction.

They would include the mixed-use River Vista project on the west bank of the Arkansas River downtown, which includes 154 apartments.

River Vista and the three other projects, if fully realized, would bring 460 more apartments to the market and push total apartments in the city’s core to more than 2,200 units.

There are currently 1,748 apartment units in the downtown and Old Town areas, downtown officials said.

Even with that total, downtown officials as well as local developers think there’s room for more – a lot more.

“I can see doubling that in the next five years,” said Old Town developer Dave Burk, who thus far has six Old Town and downtown apartment projects completed and opened. “There’s a demand, and developers are going to fill that demand.”

The projects set to begin in 2015, Wichita Downtown Development Corp. officials say, are:

▪ River Vista

▪ Exchange Place and the Bitting buildings near Douglas and Market, which call for 230 units as well as a 273-space parking garage and office and retail space

▪ 518-520 Commerce St., a three-building mixed-use project that calls for 16 residential units

▪ The addition of 60 units at the Flats at 324, near Emporia and Third streets.

George Laham, the lead partner on River Vista, told The Eagle in mid-December that he expected work on the $24 million project to begin this spring. He did not return calls this week for comment on a groundbreaking date.

Burk, developer of the Flats, which is located in the former Wichita High School, said he doesn’t yet have a firm date for when work will begin on its expansion, which will require new construction. “We’ve got plans,” he said. “We’re pricing those up … but we don’t have a schedule set for that yet. If I had to guess it would be ’15 when we start.”

Burk is also planning to start work in 2016 converting the Wichita schools administration building at 201 N. Water into 90 apartments. Burk bought the nine-story building in December from the district, which is leasing the building from Burk until it can relocate its offices next year to Southeast High School, which will move to a new building at 127th Street East and Pawnee.

“When they move out, we’ll be ready to start right away,” Burk said of the project he is calling Water Street Lofts.

Neither John McWilliams, the Dallas-based developer of Exchange Place, nor Craig Slawson, the Denver-based developer of the Commerce Street project, could be reached for comment.

Lasting demand?

Burk said he’s convinced that demand will remain strong for downtown apartments for the next few years, driven largely by millennials, who, according to various marketing studies, like living in an urban setting.

He said the majority of tenants in his existing Old Town apartments – Innes Station, Mosley Street Place, Player Piano Lofts, Lofts at Old Town Square, Rock Island Lofts – “are young professionals living alone or together,” followed by empty-nesters – adults whose children also are adults who have left home.

“I think it’s a strong niche and a niche that’s going to be around for awhile,” Burk said of millennials.

That’s what downtown officials said, too, adding they think it’s a trend that will be boosted by baby boomers.

“I would anticipate the (downtown) residential base will continue to steadily increase,” said Jeff Fluhr, WDDC’s president and CEO.

Fluhr points to an updated downtown Wichita housing report made public last July by Laurie Volk of New Jersey-based Zimmerman/Volk Associates.

The 2014 report, which was an update to a report Volk did in 2010, said downtown Wichita could support the addition of between 1,425 and 1,870 more apartment units over five to seven years.

Fluhr said he’s receiving calls from developers outside Kansas inquiring about the apartment market.

“Even this morning I was on a phone call from the West Coast,” he said. “People are watching the marketplace and seeing this activity, and understanding what the market potential is.”

Jason Gregory, WDDC executive vice president, added that there is one potential development deal downtown currently in due diligence.

“I anticipate additional projects to come forth,” Fluhr said.

This story was originally published February 25, 2015 at 5:35 PM with the headline "Developers, officials say more downtown apartments are coming."